Modi announces USD one billion concession line of credit to Nepal

Kathmandu: Assuring Nepal that India did not want to interfere in its internal affairs, Narendra Modi, the first Indian Prime Minister to visit the Himalayan nation in 17 years, stressed that their border should be a ‘bridge’ and not a barrier, as he announced a USD 1 billion Line Of Credit to this country.

As India makes efforts to deepen its diplomatic and economic engagement with its neighbours, Modi said it would like to see the rise of Nepal as a developed nation and proposed a "HIT" formula--Highways, I-Ways and Transways for its development.

Seeking to allay fears in Kathmandu of Indian interference in Nepal's affairs, the Prime Minister said that India has no intent to ‘dictate’ anything to Nepal which should choose its own course in its endeavour to build a stable and prosperous democratic republic.

"Nepal is a truly sovereign nation. We have always believed that it is not our job to interfere in what you do but to support you in the path you decide to take," he said.

Modi, who arrived in Kathmandu on a two-day visit to Nepal to a rousing reception, was addressing the Nepalese Constituent Assembly. It is only the second time that a foreign leader was addressing the Parliament with German Chancellor Helmut Kohl being the first to have the honour in 1990.

Deviating from protocol, Modi's counterpart Sushil Koirala received him at the Tribhuvan International Airport.

Modi was given a thunderous applause as he began his 45-minute speech telecast live nationally with few sentences in Nepali language just hours after his talks with his Nepalese counterpart Sushil Koirala during which the two sides signed three agreements.

"I have come here with the goodwill and love from one and a quarter billion people of India," Modi said in Nepali, which prompted members to thump their desks.

Stating that India's relations with Nepal is as old as the Himalayas and the Ganga, Modi said, "Border should be a bridge not a barrier between the two neighbours."

"India has decided to provide Nepal with NRs 10,000 crore (USD 1 billion) as concessional Line Of Credit for various development purposes. This amount is separate from the previous assistance that India has already provided to Nepal," Modi said.

Earlier, India had provided USD 250 million Line Of Credit to Nepal through the Exim Bank of India.

The new grant will be utilized for infrastructure development and energy projects as per Nepal's priority, according to Nepalese Foreign Ministry.

Proposing a model development formula for Nepal, Modi said, "I want to HIT Nepal", drawing wide applause from the lawmakers.

Elaborating his strategy, Modi said "HIT" in his lexicon implies - H:Highways, I:I-ways and T:Transways.

He said these three combined together would pave the way for rapid development of the country and India wants to "give this gift at the earliest".

After their talks at Singha Durbar Secretariat, Modi and Koirala witnessed the signing of three agreements including one regarding the amendment of Terms of Reference (TOR) of the Pancheshwar Multipurpose Project on the Mahakali river.

The Prime Minister referred to the immense potential Nepal has in terms of hydro power, tourism and herbal medicare and said India would be keen on partnering with it in exploiting these for mutual benefit.

Hailing the end to Maoism in Nepal and its effort to write a new Constitution, Modi said this endeavor should succeed so that it becomes an example across the world that violence does not serve any purpose and debate is the only way to resolve issues.

In this context, he gave the slogan of 'shastra se shaastra' (from weapon to Constitution) and 'yudh se budh' (from war to Buddha).

Asserting that Nepal is top priority in his foreign policy, Modi in his address to Nepal's Constituent said, "If you cannot sleep peacefully, how can we?"

Amid repeated thumping of desks and cheers, Modi said, "you are my own people, not separate. So we are committed to help you meet all your expectations and aspirations."

In this regard, he referred to flood threat caused by forming of an artificial dam on Kosi river yesterday and said this is as much of a concern to him as it is to Nepal.

Talking about India's eagerness to cooperate with Nepal, he said this country has rich resource of water which can "end darkness" in India through power generation.

"We don't want it free. We want to buy power. We don't even want to take your water...India wants to walk shoulder to shoulder with you. You take the decisions. By just selling power, you can become a developed nation," Modi said.

He said, "You have such immense power, such big opportunity. You come forward on development path and Constitution-making, we are committed to fulfill our 'padosi dharam' (neighbour's duty)."

While announcing the Line of Credit for Nepal's various development projects, Modi said the tasks should be identified by Nepal itself.

Talking about his proposed SAARC satellite initiative which he has said can be a "gift" from India to its neighbours, Modi said "SAARC countries should work together against poverty and together they will succeed."

"It is not a favour. It is our duty to help our younger brothers of SAARC," he said of the initiative.